SC: Compensation awarded under MVA can be more than amount claimed.

Today, i.e. on 30th November, 2018, the Hon’ble Supreme Court in the matter of Ramla and others v. National Insurance Company Limited and others pronounced that while awarding compensation under the Motor Vehicles Act, 1988, the court can award compensation which exceeds the amount claimed by the claimant.

The Hon’ble Apex Court observed that:

There is no restriction that the Court cannot award compensation exceeding the claimed amount, since the function of the Tribunal or Court under Section 168 of the Motor Vehicles Act, 1988 is to award “just compensation”. (Para 6)

The Motor Vehicles Act is a beneficial and welfare legislation. A “just compensation” is one which is reasonable on the basis of evidence produced on record. It cannot be said to have become time­-barred. (Para 6)

Further, there is no need for a new cause of action to claim an enhanced amount. The Courts are duty bound to award just compensation. (Para 6)

Copy of judgement: Judgement 30-Nov-2018

-Tushar Kaushik

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